Employees are perhaps the most valuable asset of a company. However, keeping and attracting valuable employees often requires that the company compensates employees adequately. Many companies hold employee review meetings at least once a year to review/evaluate employees. An employee appraisal may be based on performance but may also focus on other areas, such as: talent, potential to grow, collegiality, etc.
To normalize their review processes, companies may set organizational expectations to drive some of the employee review/evaluation processes. For example, a company may estimate that a fixed percentage of employees are likely to have an appraisal score “meet expectations,” another fixed percentage to “exceed expectations,” and yet another percentage to be “below expectations.” These scores may set expectations regarding compensation. For example, an employee that exceeds expectation may expect higher compensation than someone who is not performing well.
Managers often evaluate employees within a business unit of a company and give appraisal scores. The manager may adjust appraisals for employees based on a variety of factors, such as: personal reflection of an employee's performance, peer-reviews, extraordinarily good deeds, etc. However, a manager may not be authorized to adjust the employee's compensation when the manager adjusts employee appraisals. For example, the compensation may be handled by a HR department and may be based on a job title, educational background, seniority, etc.
There may be other constraints that limit possible adjustment of compensations. For example, there may be a fixed budget for employee compensation within the business unit. In addition, reviews of employee appraisals are typically performed by managers in isolation, so reviews may not be accurate. Also, the information that can be relevant to determining employee compensation may not be available for people making compensation adjustment. Accordingly, there is a need in the art for improved systems and methods for associating employee compensations with employee appraisals.